Weekly Fertilizer Bulletin | Urea Couples with NH3

Posted on 01/03/2019 4:29 PM

 

  • Fertilizer prices were mixed but slightly higher overall.
  • Our Nutrient Composite Index firmed 0.60 points to 603.25. This compares to our 5-year average of 598.28 for this week.

Nitrogennitrogen indices

  • Nitrogen was mostly higher led by a sharp rise in anhydrous ammonia.
  • UAN32% was sharply higher as well, adding $11.96 on the week.
  • UAN28% firmed less than one dollar by the short ton.
  • Urea softened as much as anhydrous firmed on the week, placing the two very near parity. This is an interesting technical setup as the coupling of the two prices may indicate the worst of this rally is nearing.
  • We continue to seek out the reasons for the current nitrogen strength and have as of yet been unable to find a satisfactory explanation. At this point it will be vital to your bottom line to focus more on finding the best deal possible in your area for spring nutrient, and on managing the strain the jump in nitrogen prices may place on the production budget.

Phosphatepandk

  • Phosphate prices were lower on the week.
  • MAP led the decline falling $11.96 on the week. Pressure stemmed from a corrective move to the downside in Indiana.
  • DAP was led lower by Missouri and Indiana.
  • According to MosaicCo, wholesale phosphate prices were steady to lower at U.S. terminals during the week ended December 21.

Potash

  • Potash prices were higher on the week led by price strength in Minnesota.
  • MosaicCo reports steady wholesale potash prices at U.S. terminals during the report week.
  • We have been watching the spread between our indexed potash price and anhydrous ammonia. NH3 sprang to a sturdy premium to potash which may signal upside risk for vitamin K.

Corn Futures

  • December 2019 corn futures closed Friday December 28 at $3.97 putting expected new-crop revenue (eNCR) at $643.56 per acre -- off $3.46 per acre on the week.
  • With our Nutrient Composite Index (NCI) at 603.25 this week, the eNCR/NCI spread narrowed 4.06 points and now stands at -40.31.
Fertilizer
12/17/18
12/24/18
Change
Current Week
Fertilizer
Anhydrous
$549.45
$573.60
+$20.40
$593.99
Anhydrous
DAP
$533.07
$524.18
-$2.63
$521.55
DAP
MAP
$541.47
$538.25
-$11.96
$526.29
MAP
Potash
$367.33
$372.33
+$5.19
$377.52
Potash
UAN28
$275.34
$276.39
+86 cents
$277.24
UAN28
UAN32
$301.11
$301.75
+$11.91
$313.66
UAN32
Urea
$412.02
$418.08
-$20.11
$397.98
Urea
Composite
598.50
602.65
+0.60
603.25
Composite

nutrient composite index chart

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